Chapter 3

TECHNICAL STUDY

OBJECTIVES

Technical study was conducted to:

1. Describe the product and identify its uses.

2. Determine the manufacturing process and production schedule of

the proposed business.

3. Specify the needed raw materials, supplies, machines, tools,

equipments, utilities, and their cost for the business.

4. Illustrate the business’ vicinity map, plant size and layout.

5. Identify the waste disposal method to be used by the business.

6. Determine the direct labor requirements of the proposed business.

PRODUCT

Description

Taro Fritter Dumpling is inspired by the internationally renowned Wu-

Gok, a dumpling wrapped with taro root filled with meat and sweet taro

paste. But instead of having taro root as the wrapper, Taro Fritter Dumpling

would make use of it as the main ingredient in the filling together with the

taro leaves. The 4-inch square wonton wrapper would be fold into half that

would makes the dumpling have a dimension of 4-inch wide by 2-inch

length. Each dumpling would weigh 27.1 gram. It would be filled with taro
 27

root, taro leaves, tofu, rice, and other condiments. To enhance the flavor, it

would be served with a dipping sauce. As to its appearance, it would be

served with a golden brown color to make it more attractive for it would be

coated with beaten egg before it is fried in oil. As for its nutritional facts, it

would be shown in Appendix 4.

Uses

Taro Fritter Dumpling is intended to be a ready-to-serve heavy meal as it

is loaded with rice plus taro and tofu as the viand. It would be a good snack

for students and for nearby employees, as well as for the out-patients of

Laguna Diagnostic Center who are exhausted on their daily activities. This

dumpling can also be a “pasalubong” to the loved ones of those individual

consumers.

MANUFACTURING PROCESS

Description of the Process:

The manufacturing process for Taro Fritter Dumpling business is divided

into three. First, the dumpling production’s pre-operational procedure would

be performed continuously by the production staff on each day of operation.

Second, the dumpling production’s operational procedure would be

performed by the sales staff who is taking the actual orders from the

customers. Third, while preparing the dumpling, the assigned production

staff would also be responsible for the dumpling sauce production’s pre-
 28

operational procedure. The following manufacturing process is designed for

the daily production of 720 Taro Fritter Dumpling.

The standard proportion of raw materials needed for a daily production

of 720 pieces of Taro Fritter Dumpling with the equivalent dipping sauce is

shown in table 11.

Table 11

Total Cost of Raw Materials for the Production of 720 Pieces of Taro
Fritter Dumpling and its Dipping Sauce

Items Quantity Unit Main Source Cost Per Unit Total

Taro roots 420 g Calamba Wet Market P240.00 6000 g P16.80
Taro Leaves 60 g Calamba Wet Market 60.00 1500 g 2.40
Puregold Jr. Parian,
Carrots 180 g 360.00 6000 g 10.80
Calamba
Onion 36 g Calamba Wet Market 186.00 2280 g 2.94
Garlic 36 g Calamba Wet Market 186.00 2280 g 2.94
Waltermart
Tofu 300 g 804.00 6000 g 40.20
Supermarket
Iodized Salt 15 g Calamba Wet Market 42.00 1500 g 0.42
Liver spread 1020 g Calamba Wet Market 108.00 510 g 470.12
Butter 1200 g Calamba Wet Market 288.00 1350 g 256.00
Ground Waltermart
2.4 g 177.00 300 g 1.42
Pepper Supermarket
Rice
24 c Calamba Wet Market 180.00 6000 g 0.72
(cooked)
Peanut 12 c Calamba Wet Market 120.00 6 c 240.00
Wonton
720 pc Calamba Wet Market 22.00 120 pc 132.00
Wrapper
Eggs 24 pc Calamba Wet Market 174.00 36 pc 116.00
Palm oil 2100 ml Calamba Wet Market 390.00 2910 ml 281.44
Soy sauce 15 ml Calamba Wet Market 13.00 350 ml 0.56
Chili oil 9 ml Calamba Wet Market 33.00 100 ml 2.97
Sesame oil 9 ml Calamba Wet Market 45.00 100 ml 4.05
Chicken
2 g Calamba Wet Market 6.00 25 g 6.00
broth
Roasted
sesame 4.5 g Calamba Wet Market 17.00 25 g 3.06
seed
Total Php 1,590.84
Taro Fritter Dumpling Production’s Preoperational Procedure:
 29

1. Cooking the rice. Cook the rice. (TIME: 30 minutes / MANPOWER:

1)

2. Preparing the raw materials. It includes washing taro roots, taro

leaves, and carrots; peeling taro roots, carrots, onion and garlic;

grating taro roots, carrots, onion, and garlic; chopping tofu; cooking

rice; and beating egg. (TIME: 1 hour and 30 minutes / MANPOWER:

2)

3. Sautéing. Sautéing taro root in a pan of butter for 10 minutes. Mix

the tofu and sauté for 5 minutes. Mix the taro leaves, carrots, liver

spread, onion, and garlic, then sauté for a minute. Sprinkle salt and

pepper and mix it. Put rice and peanut, then mix it until the mixture

are evenly amalgamated. (TIME: 30 minutes / MANPOWER: 1)

4. Removing from heat. Remove the pan from the heat and place it in

a bowl. (TIME: 1 minute / MANPOWER: 1)

5. Wrapping. Wrap a spoonful of the mixture in a piece of shanghai

wrapper. (TIME: 6 hours / MANPOWER: 1 and 2)

6. Refrigerating the dumpling. Place the dumpling inside the

refrigerator until the order is made for the actual operation.

(MANPOWER: 1 and 2)

Taro Fritter Dumpling Production’s Operational Procedure:

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1. Dipping. Dip the dumplings in beaten egg. (TIME: 2 seconds /

MANPOWER: 1)

2. Frying. Fry the dumplings in oil until golden brown. (TIME: 1 minute /

MANPOWER: 1)

3. Packaging. The packaging per order of dumplings depends on the

quantity of ordered dumplings. If the order per transaction is less

than six (6) pieces, it would be packed in paper bag but if it is equal

or greater than six (6) pieces, then it would be packed in a paper

box. (TIME: 3 seconds / MANPOWER: 1)

Figure 11

Legend of Shapes and Color

OPERATION = TRANSPORTATION = INSPECTION =

DELAY = STORAGE =

ACTIVE PROCESS = INACTIVE PROCESS =

Table 12
 31

Taro Fritter Dumpling Production’s Pre-Operational Procedure

TIME ACTIVITY SYMBOL

30 minutes 1. Cook the rice

1 hour and 30 2. Preparing the raw

minutes materials

30 minutes 3. Sautéing

1 minute 4. Removing from heat

6 hours 5. Wrapping
6. Refrigerating the
dumpling

Table 13

Taro Fritter Dumpling Production’s Operational Procedure

TIME ACTIVITY SYMBOL

2 seconds 1. Dipping

1 minute 2. Frying

3 seconds 3. Packaging

The following procedure is designed for manufacturing the Taro Fritter

Dumplings signature sauce which is good for one day:

Preoperational Procedure:
 32

1. Boiling. Boil the chicken broth cube in water.

2. Combining. Prepare saucers and add the ingredients for the dips.

3. Pouring. Pour the sauce mixture in a sauce dispenser.

Table 14

Taro Fritter Dumpling Dipping Sauce Pre-Operational Procedure

TIME ACTIVITY SYMBOL

5 minutes 1. Boiling

10 minutes 2. Combining

1 minute 3. Pouring

PRODUCTION SCHEDULE

Taro Fritter Dumpling would be on a free-standing kiosk store operating

6 days a week from 8:00 A.M. to 6:00 P.M. A one-hour pre-operating

procedures would be provided to prepare the workers for the regular

starting time. A one-hour post-operating procedures would also be provided

for cleaning and reporting purposes. There would be a shifting of schedules

due to the length of time for operation. The daily production

schedules/activities would be seen at Appendix 6 while the weekly

operational activities of the workers would be seen at Table 15.

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The estimated number of daily operation per year is 303 days since the

business would operate 6 days a week less the number of holidays that

would definitely affect the business operation. The list of holidays that would

definitely affect the business would be seen on Table 23 in Chapter 4 under

the employees’ compensation’s Equivalent Monthly Rate (EMR).

Table 15

The Operational Activity of the Worker per Week

Number of
Day Activity
Personnel
1 Manufacturing of Product, Selling, Inventory 4
2 Manufacturing of Product, Selling, Inventory 4
3 Manufacturing of Product, Selling, Inventory 4
4 Manufacturing of Product, Selling, Inventory 4
5 Manufacturing of Product, Selling, Inventory 4
Manufacturing of Product, Selling, Purchasing,
6 4
Inventory

Total Number of Operating Days per Year:

= total no. of days per year – no. of Sundays per year – no. of

holidays

= 365 days – 52 Sundays – 10 holidays

= 303 days of productive operation

MACHINERY AND EQUIPMENT

Colocasia Foods, Inc. does not use machineries since the production

process of the product does not call for the use of machineries. At the same
 34

time, it uses two (2) alternative sources for each of the necessary tools and

equipments for the business which would be shown in Appendix 5 while the

following table would show the decided source for each item per category.

Table 16

Total Cost of the Production Tools and Equipments

Items Quantity Main Source Specifications Unit Cost Total Cost

Refrigerator 1 pc Walter Mart Kelvinator P 5,995.00 P 5,995.00
Stove 1 pc Waltermart Rinnai 3,128.00 3,128.00
Glass
Mrs. Celeste
Display 1 pc Clear Glass 1,000.00 1,000.00
Galang
Container
Frying Pan 2 pc Novo Huochu 140.00 280.00
Walter Mart
Knife 2 pc Zahoranzky 93.50 187.00
Calamba
Casserole 1 pc SM Calamba Chef Gallery 359.50 359.50
Calamba Wet
Tongs 2pc Stainless Steel 20.00 40.00
Market
Measuring
1 pc SM Calamba 1 set 89.75 89.75
Cups
Mixing
2 pc SM City Calamba Stainless steel 199.75 399.50
Bowl
Chopping
2 pc SM Calamba Homeworld 79.75 159.50
Board
(Stainless
Ladle 2 pc Novo 40.00 80.00
Steel) Ok
Sauce
4 pc Ace Hardware Tupperware 44.75 179.00
Dispenser
Grater 2 pc Novo Kitchen Mate 85.00 170.00
Square-shaped
Pot Holder 4 pc Novo 15.00 60.00
pot holder
Apron 2 pc Novo 100% Cotton 30.00 60.00
Food Plastics,
2 pairs SM Calamba 79.75 159.50
Gloves medium-sized
Kitchen
2 pc Novo Premium 30.00 60.00
Towel
Mrs. Celeste
Kiosk 1 pc Partly wooden 1,000.00 1,000.00
Galang
Kitchen Mrs. Celeste
5 pc Wooden 500.00 2,500.00
Table Galang
Total Php 15,906.75
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Table 17

Total Cost of the Office Tools and Equipments

Items Quantity Main Source Specification Unit Cost Total Cost

Business
1 pc Abenson Lenovo (Laptop) P16,995.00 P16,995.00
Computer

Electric Fan 2 pc Walter Mart Standard 1,498.00 2,996.00

Wall Clock 1 pc Newstar Rounded 100.00 100.00

National
Calculator 1 pc Casio 12-digit 395.00 395.00
Bookstore
Log National
1 pc 500 pages 74.00 74.00
Notebook Bookstore

Scissors 1 pc Novo Mishifeng 50.00 50.00

Xusheng (staple
Stapler 1 pc Novo 40.00 40.00
24/6 26/6)
Stamp 1 pc Fiesta Stamp Xstamper C53 660.00 660.00
SM City
Stamp
1 pc Calamba Artline 135.00 135.00
Pad
Fiesta Stamp
File Lorenz Filing Cabinet
1 pc 6,800.00 6,800.00
Cabinet Furniture Wrinkled, 4 Drawer
Office with Side Drawers
Table / Lorenz on both Sides and
1 pc 3,700.00 3,700.00
Computer Furniture Center Drawer with
Desk lock
Monoblock Waltermart
5 pc Uratex 200.00 1,000.00
Chair Handyman
SM City
Pail 1 pc   179.75 179.75
Calamba
Rounded without
Trashcan 2 pc Novo 55.00 110.00
covering
Plastic Absorbent
Floor Mop 1 pc Novo 170.00 170.00
Cotton Mop
Calamba Wet
Floor Mat 2 pc  Rectangular 20.00 40.00
Market
Dustpan 1 pc Novo Dustpan with 50.00 50.00
stainless steel
handle
Scrub 1 pc Novo Plastic Scrub 25.00 25.00

Total Php 33,519.75

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Table 18

Total Cost of the Consumable items

Main
Items Quantity Specifications Unit Cost Total Cost
Source
Daily Time National
1 pc 100 leaves P 50.00 P 50.00
Record Bookstore
Maya
Ballpen 1 box Panda 50.00 50.00
Bookstore 
Bachang
Staple Wires 2 pc Novo Staples (1 8.00 16.00
box)
Dishwashing SM City
1 pc Smart 36.75 36.75
Liquid Calamba
Trash Bag 1 pack  Novo Black 55.00 55.00
Calamba
Broom 1 pc Wooden 50.00 50.00
Wet Market
2 pc SM City
Sponge Zim 17.00 34.00
Calamba
National
Ink 2 pc Black 94.00 188.00
Bookstore
PR Gaz
LPG 1 pc PR Gaz 700.00 700.00
House
Total Php 1179.75

Table 19

Total Cost of Promotional Activities

Activities Source Total Cost

Leaflets Jodenat (Computer and printing shop) P 2,036.00
Kiosk Ads Mrs. Celeste Galang 500.00
Tarpaulin Jodenat (Computer and printing shop) 800.00
Total Php 3,336.00
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Table 20

The Projected Cost of the Packaging Materials

Materials Quantity Source Cost Total Cost

Paper Marishi Retail P 0.75 per
4545 pcs P 3,408.75
Box Store piece
Paper Marishi Retail P 15.00 per 50
9090 pcs 2,727.00
bag Store pieces
Total Php
6,135.75

PLANT LOCATION, SIZE AND LAYOUT

The proposed business would be located in National Highway Barangay

Uno, Calamba City in front of STI Calamba College and beside Laguna

Diagnostic Center. The location is an advantage to the business due to the

availability communication lines, power, electricity and water; and to its

marketability.

The manufacturing plant size for of Colocasia Foods, Inc. is 6.5 by 14

meter square. The store layout, to be shown in Figure 11 is divided into

three: the canteen, kitchen, and production area. In front of the store is a

personalized kiosk whereas the layout would be shown in Figure 12.

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Figure 12

Vicinity Map
 39

Figure 13

Plant Size and Layout

 40

Figure 14

Kiosk Layout
 41

RAW MATERIALS AND SUPPLIES

Raw materials needed in the production would be bought weekly. For an

easier process, specific contact person would be available for the

purchasing of materials. For ordering procedures, delivery would be

provided for lesser transportation. For future operation, direct suppliers of

taro would be coming from Barangay Halang, Lechera, and La Mesa. The

list of raw materials and supplies required for the production as well as the

operation of the business is shown in Table 11, 16, 17, 18, 19, and 20 while
 42

the alternative sources for each item per category would be shown in

Appendix 5.

UTILITIES

The monthly and annual cost of the utilities is shown in Table 21.

Table 21

Total Cost of Utilities

Utilities Monthly Annually

Electricity P 2,000.00 P 24,000.00
Water 500.00 6,000.00
Internet and Load Allowance 1,300.00 15,600.00
Rent 5000.00 60,000.00
Total P 8,800.00 P 105,600.00

WASTE DISPOSAL

There are two kinds of waste that would come up from the production.

First, the waste of the raw materials used in producing the proposed

product. Those are the peel of taro roots, carrots, onion, and garlic; the

shell of the eggs; and the veins of the taro leaves. All of these would be put

in a garbage bag. Then, upon the next delivery of raw materials, it would be

given to the suppliers of taro for free. They would make use of the waste as

fertilizer. With this, there is an assurance of camaraderie and future

transactions with them.

The second type of waste are the plastic packaging of the ingredients

used. All kinds of plastics, except cups or bottles, if any, that are considered
 43

waste would be put in a garbage bag and after the end of the weekly

operation, it would be put on the side of a post placed in front of the store.

The garbage collectors would then get it there by 8:00 P.M., as scheduled

in their operation.

Other kinds of waste would be papers and bottles. These would be kept

first on a certain place of the manufacturing area before it would be sold to

a junkshop. The schedule of selling it is every last Friday of the month.

DIRECT LABOR REQUIREMENTS

The business required a total of four manpower in order to run the

business’ daily operations: an operation manager would oversee the

production of the product and the performance of all the staff; two

production staff would prepare the product before and during the business

operation; and a sales staff who would calculate total bill, accept payment,

and give change for customers. A further discussion regarding the

employees’ duties and responsibilities would be mentioned in Chapter 4.

Table 22

Direct Labor Requirements

NUMBER OF DAILY MONTHLY ANNUAL

POSITION
PERSONNEL SALARY SALARY SALARY
Operational Mgr. 1 P 1,076.57 P 27,183.39 P 326,200.71
Production Staff 2 574.17 14,497.79 173,973.51
Sales Staff 1 287.08 7,248.77 86,985.24
Total 4 P 1,937.82 P 48,929.96 P 587,159.46